Quorn Guest Houses Limited - Period Ending 2017-06-30
Quorn Guest Houses Limited - Period Ending 2017-06-30
Registration number:
Quorn Guest Houses Limited
for the Year Ended 30 June 2017
Chartered Accountants
Westwood House
78 Loughborough Road
Quorn
Loughborough
Leicestershire
LE12 8DX
Quorn Guest Houses Limited
Contents
Company Information |
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Balance Sheet |
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Notes to the Financial Statements |
Quorn Guest Houses Limited
Company Information
Directors |
C. A. Longden A. Longden |
Company secretary |
C. A. Longden |
Registered office |
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Accountants |
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Page 1 |
Quorn Guest Houses Limited
(Registration number: 00404679)
Balance Sheet as at 30 June 2017
Note |
2017 |
2016 |
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Fixed assets |
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Tangible assets |
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Investment property |
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Current assets |
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Debtors |
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Cash at bank and in hand |
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Creditors: Amounts falling due within one year |
( |
( |
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Net current liabilities |
( |
( |
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Total assets less current liabilities |
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Provisions for liabilities |
( |
( |
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Net assets |
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Capital and reserves |
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Called up share capital |
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Revaluation reserve |
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Profit and loss account |
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Total equity |
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The notes on pages 4 to 11 form an integral part of these financial statements.
Page 2 |
Quorn Guest Houses Limited
(Registration number: 00404679)
Balance Sheet as at 30 June 2017
For the financial year ending 30 June 2017 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Directors' responsibilities:
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The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts. |
These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.
These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Profit and Loss Account has been taken.
Approved and authorised by the
.........................................
A. Longden
Director
The notes on pages 4 to 11 form an integral part of these financial statements.
Page 3 |
Quorn Guest Houses Limited
Notes to the Financial Statements for the Year Ended 30 June 2017
General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
The principal place of business is:
18 High Street
Quorn
Loughborough
Leicestershire
LE12 8DT
These financial statements were authorised for issue by the
Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
Page 4 |
Quorn Guest Houses Limited
Notes to the Financial Statements for the Year Ended 30 June 2017
Departure from requirements of FRS 102
No depreciation is provided in respect of the investment property. This treatment conflicts with FRS 102 which requires all property to be depreciated. The directors consider that because this property is not held for consumption but for its investment potential it is necessary to not depreciate in order to give a true and fair view. The effect of not departing from FRS 102 would be to reduce the reported profit for the year by depreciation. The amount of depreciation cannot reasonably be quantified because depreciation is only one of many factors reflected in the annual valuation and the amounts which might otherwise have been shown cannot be separately identified or quantified. |
Departures from Companies Act requirements
No depreciation is provided in respect of the investment property. This treatment conflicts with the Companies Act 2006 which requires all property to be depreciated. The directors consider that because this property is not held for consumption but for its investment potential it is necessary to not depreciate in order to give a true and fair view. The effect of not departing from the Companies Act 2006 would be to reduce the reported profit for the year by depreciation. The amount of depreciation cannot reasonably be quantified because depreciation is only one of many factors reflected in the annual valuation and the amounts which might otherwise have been shown cannot be separately identified or quantified. |
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the provision of services in the ordinary course of the company’s activities. Turnover is shown net of value added tax, returns, rebates and discounts.
The company recognises revenue when the amount of revenue can be reliably measured; it is probable that future economic benefits will flow to the entity and specific criteria have been met for each of the company's activities.
Tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.
Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.
Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.
Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.
Page 5 |
Quorn Guest Houses Limited
Notes to the Financial Statements for the Year Ended 30 June 2017
Tangible assets
Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets over their estimated useful lives, as follows:
Asset class |
Depreciation method and rate |
Investment property |
Not depreciated |
Fixtures, fittings and equipment |
10% reducing balance |
Investment property
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Trade debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the debtors.
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
Page 6 |
Quorn Guest Houses Limited
Notes to the Financial Statements for the Year Ended 30 June 2017
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Dividends
Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.
Staff numbers |
The average number of persons employed by the company (including directors) during the year, was
Page 7 |
Quorn Guest Houses Limited
Notes to the Financial Statements for the Year Ended 30 June 2017
Tangible assets |
Fixtures, fittings and equipment |
Total |
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Cost or valuation |
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At 1 July 2016 |
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At 30 June 2017 |
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Depreciation |
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At 1 July 2016 |
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Charge for the year |
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At 30 June 2017 |
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Carrying amount |
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At 30 June 2017 |
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At 30 June 2016 |
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Investment property |
2017 |
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At 1 July 2016 |
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At 30 June 2017 |
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The directors have revalued the investment property on an open market value basis.
There has been no valuation of investment property by an independent valuer.
Debtors |
2017 |
2016 |
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Prepayments |
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Other debtors |
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- |
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Page 8 |
Quorn Guest Houses Limited
Notes to the Financial Statements for the Year Ended 30 June 2017
Creditors |
Creditors: amounts falling due within one year
Note |
2017 |
2016 |
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Due within one year |
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Bank loans and overdrafts |
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Taxation and social security |
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Accruals and deferred income |
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Other creditors |
- |
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Share capital |
Allotted, called up and fully paid shares
2017 |
2016 |
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No. |
£ |
No. |
£ |
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|
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2,530 |
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2,530 |
Loans and borrowings |
2017 |
2016 |
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Current loans and borrowings |
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Bank overdrafts |
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Other borrowings |
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Page 9 |
Quorn Guest Houses Limited
Notes to the Financial Statements for the Year Ended 30 June 2017
Related party transactions |
Other transactions with directors |
During the year the directors received dividends amounting to £10,000.
Transition to FRS 102 |
Balance Sheet at 1 July 2015
As originally reported |
Remeasurement |
As restated |
|
Fixed assets |
|||
Tangible assets |
8,969 |
- |
8,969 |
Investment property |
875,000 |
- |
875,000 |
883,969 |
- |
883,969 |
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Current assets |
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Debtors |
1,686 |
- |
1,686 |
Cash at bank and in hand |
124 |
- |
124 |
1,810 |
- |
1,810 |
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Creditors: Amounts falling due within one year |
(76,479) |
- |
(76,479) |
Net current liabilities |
(74,669) |
- |
(74,669) |
Total assets less current liabilities |
809,300 |
- |
809,300 |
Provisions for liabilities |
(1,472) |
(75,000) |
(76,472) |
Net assets/(liabilities) |
807,828 |
(75,000) |
732,828 |
Capital and reserves |
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Called up share capital |
2,530 |
- |
2,530 |
Revaluation reserve |
768,057 |
(75,000) |
693,057 |
Profit and loss account |
37,241 |
- |
37,241 |
Total equity |
807,828 |
(75,000) |
732,828 |
Page 10 |
Quorn Guest Houses Limited
Notes to the Financial Statements for the Year Ended 30 June 2017
Balance Sheet at 30 June 2016
As originally reported |
Remeasurement |
As restated |
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Fixed assets |
|||
Tangible assets |
8,072 |
- |
8,072 |
Investment property |
875,000 |
- |
875,000 |
883,072 |
- |
883,072 |
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Current assets |
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Debtors |
1,657 |
- |
1,657 |
Cash at bank and in hand |
55 |
- |
55 |
1,712 |
- |
1,712 |
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Creditors: Amounts falling due within one year |
(69,451) |
- |
(69,451) |
Net current liabilities |
(67,739) |
- |
(67,739) |
Total assets less current liabilities |
815,333 |
- |
815,333 |
Provisions for liabilities |
(1,350) |
(73,000) |
(74,350) |
Net assets/(liabilities) |
813,983 |
(73,000) |
740,983 |
Capital and reserves |
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Called up share capital |
2,530 |
- |
2,530 |
Revaluation reserve |
768,057 |
(73,000) |
695,057 |
Profit and loss account |
43,396 |
- |
43,396 |
Total equity |
813,983 |
(73,000) |
740,983 |
Page 11 |